Hour Loop Reports Third Quarter 2024 Results
Hour Loop (NASDAQ: HOUR) reported Q3 2024 financial results with net revenues increasing 6.6% to $31.1 million compared to $29.1 million in Q3 2023. The company achieved a net income of $0.5 million, improving from a $0.02 million loss year-over-year. Gross profit percentage increased to 54.8% from 52.6%. Operating expenses as percentage of revenues slightly increased to 52.5%. Cash position stood at $1.2 million, down from $2.5 million at end of 2023. The company maintained its full-year 2024 guidance with expected revenues of $165-250 million and net income of $4-6 million.
Hour Loop (NASDAQ: HOUR) ha riportato i risultati finanziari del terzo trimestre 2024, con ricavi netti in aumento del 6,6% a 31,1 milioni di dollari rispetto ai 29,1 milioni di dollari del terzo trimestre 2023. L'azienda ha ottenuto un reddito netto di 0,5 milioni di dollari, migliorando rispetto a una perdita di 0,02 milioni di dollari dell'anno precedente. La percentuale di profitto lordo è aumentata al 54,8% rispetto al 52,6%. Le spese operative come percentuale dei ricavi sono leggermente aumentate al 52,5%. La posizione di cassa si attestava a 1,2 milioni di dollari, in calo rispetto ai 2,5 milioni di dollari di fine 2023. L'azienda ha mantenuto le previsioni per l'intero anno 2024, con ricavi attesi di 165-250 milioni di dollari e un reddito netto di 4-6 milioni di dollari.
Hour Loop (NASDAQ: HOUR) informó los resultados financieros del tercer trimestre de 2024, con ingresos netos aumentando un 6.6% a 31.1 millones de dólares en comparación con 29.1 millones de dólares en el tercer trimestre de 2023. La compañía logró un ingreso neto de 0.5 millones de dólares, mejorando desde una pérdida de 0.02 millones de dólares en comparación con el año anterior. El porcentaje de utilidad bruta aumentó al 54.8% desde el 52.6%. Los gastos operativos como porcentaje de los ingresos aumentaron ligeramente al 52.5%. La posición de efectivo se situó en 1.2 millones de dólares, disminuyendo desde los 2.5 millones de dólares a finales de 2023. La empresa mantuvo su guía para todo el año 2024, con ingresos esperados de 165 a 250 millones de dólares y un ingreso neto de 4 a 6 millones de dólares.
Hour Loop (NASDAQ: HOUR)는 2024년 3분기 재무 결과를 발표했으며, 순수익이 2023년 3분기 2910만 달러에서 6.6% 증가하여 3110만 달러에 달했습니다. 회사는 50만 달러의 순이익을 기록하며, 전년 동기 대비 2만 달러의 손실에서 개선되었습니다. 총 이익률은 52.6%에서 54.8%로 증가했습니다. 수익 대비 운영 비용 비율은 52.5%로 약간 증가했습니다. 현금 보유액은 120만 달러로, 2023년 말 250만 달러에서 감소했습니다. 회사는 2024 회계연도의 총 매출 예상치를 1억 6500만 달러에서 2억 5000만 달러로, 순이익을 400만 달러에서 600만 달러로 유지했습니다.
Hour Loop (NASDAQ: HOUR) a publié les résultats financiers du troisième trimestre 2024, avec des revenus nets augmentant de 6,6 % pour atteindre 31,1 millions de dollars par rapport à 29,1 millions de dollars au troisième trimestre 2023. L'entreprise a réalisé un bénéfice net de 0,5 million de dollars, améliorant ainsi une perte de 0,02 million de dollars par rapport à l'année précédente. Le pourcentage de profit brut est passé de 52,6 % à 54,8 %. Les dépenses d'exploitation en pourcentage des revenus ont légèrement augmenté à 52,5 %. La position de liquidité était de 1,2 million de dollars, en baisse par rapport à 2,5 millions de dollars à la fin de 2023. L'entreprise a maintenu ses prévisions pour l'année 2024, avec des revenus estimés entre 165 et 250 millions de dollars et un bénéfice net de 4 à 6 millions de dollars.
Hour Loop (NASDAQ: HOUR) hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, wobei die Nettoumsätze um 6,6% auf 31,1 Millionen US-Dollar im Vergleich zu 29,1 Millionen US-Dollar im 3. Quartal 2023 gestiegen sind. Das Unternehmen erzielte einen Nettoertrag von 0,5 Millionen US-Dollar, was eine Verbesserung gegenüber einem Verlust von 0,02 Millionen US-Dollar im Vergleich zum Vorjahr darstellt. Der Bruttogewinnsatz stieg von 52,6% auf 54,8%. Die Betriebskosten als Prozentsatz der Umsätze erhöhten sich leicht auf 52,5%. Die Liquiditätsposition betrug 1,2 Millionen US-Dollar, was einem Rückgang von 2,5 Millionen US-Dollar Ende 2023 entspricht. Das Unternehmen hält an seiner Prognose für das Gesamtjahr 2024 fest, mit erwarteten Umsätzen von 165 bis 250 Millionen US-Dollar und einem Nettoertrag von 4 bis 6 Millionen US-Dollar.
- Net revenue increased 6.6% YoY to $31.1 million
- Turned $0.02 million loss into $0.5 million profit
- Gross profit margin improved by 2.2% to 54.8%
- Operating expenses as % of revenue remained stable at 52.5%
- Maintained strong full-year guidance of $165-250M revenue and $4-6M net income
- Cash position decreased from $2.5M to $1.2M
- Operating cash flow negative at -$1.2M for nine months
- Facing challenges from severe congestion in inbound logistics
- Experiencing overall e-commerce traffic slowdown and intense competition
Insights
Hour Loop's Q3 results show mixed signals with some positive developments amid challenging conditions. Revenue growth of
However, there are concerning elements: cash position declined to
Profitability Continues Despite Warning Signs for the Overall Economy
Redmond, WA, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Hour Loop, Inc. (NASDAQ: HOUR) (“Hour Loop”), a leading online retailer, announces its financial and operational results for the quarter ended September 30, 2024.
Financial Highlights for Third Quarter 2024:
- Net revenues in the third quarter increased
6.6% to$31.1 million , compared to$29.1 million in the year-ago period; - Net income in the third quarter totaled
$0.5 million , compared to net loss of$0.02 million in the year-ago period; and - Cash used in operating activities for the nine months ended September 30, 2024, was
$1.2 million , compared to$3.9 million in the year-ago period.
Management Commentary
“We are pleased to report our third quarter 2024 results, in which we continued to deliver good revenue growth, despite low active inventory level due to challenges from severe congestion in the inbound logistics,” said Sam Lai, CEO and interim CFO of Hour Loop. “The revenue growth rate for the third quarter was
“Our gross margin and operating margin were both improved, compared with the year-ago period, because of efforts made for inventory quality and efficiency enhancement, operation efficiency improvement, as well as expenses management. Overall, we believe we’ve built a solid foundation to continue generating satisfactory growth while maintaining profitability.”
“Looking forward, we’re cautiously optimistic. Despite an uncertain economy, we continue to see good demand for our products so far in 2024. We are confident in our ability to continue delivering value to our vendors, customers, and shareholders.”
Third Quarter 2024 Financial Results
Net revenues in the third quarter of 2024 were
Gross profit percentage in the third quarter increased
Operating expenses as a percentage of net revenues in the third quarter decreased slightly, by
Net income in the third quarter of 2024 was
As of September 30, 2024, the Company had
Inventories as of September 30, 2024, were
Full Year 2024 Financial Outlook
For the full year 2024, Hour Loop maintained its guidance for net revenue to be in the range of
About Hour Loop, Inc.
Hour Loop is an online retailer engaged in e-commerce retailing in the U.S. market. It has operated as a third-party seller on www.amazon.com and has sold merchandise on its website at www.hourloop.com since 2013. Hour Loop further expanded its operations to other marketplaces such as Walmart, eBay, and Etsy. To date, Hour Loop has generated practically all its revenue as a third-party seller on www.amazon.com and only a negligible amount of revenue from its own website and other marketplaces. Hour Loop manages more than 100,000 stock-keeping units (“SKUs”). Product categories include home/garden décor, toys, kitchenware, apparel, and electronics. Hour Loop’s primary strategy is to bring most of its vendors’ product selections to the customers. It has advanced software that assists Hour Loop in identifying product gaps so it can keep such products in stock year-round including the entirety of the last quarter (holiday season) of the calendar year. In upcoming years, Hour Loop plans to expand its business rapidly by increasing the number of business managers, vendors, and SKUs.
Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements," including with respect to Hour Loop’s business strategy, product development and industry trends. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of Hour Loop. While Hour Loop believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to Hour Loop on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in Hour Loop’s filings with the Securities and Exchange Commission, as the same may be updated from time to time. Thus, actual results could be materially different. Hour Loop undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, after the date of this release, except as required by law.
Investor Contact
Finance Department, Hour Loop, Inc.
finance@hourloop.com
HOUR LOOP, INC.
CONSOLIDATED BALANCE SHEETS
(In U.S. Dollars, except for share and per share data)
As of September 30, 2024 and December 31, 2023
(Unaudited)
| September 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 1,194,239 | $ | 2,484,153 | ||||
| Accounts receivable, net | 548,224 | 747,650 | ||||||
| Inventory, net | 29,081,306 | 14,276,555 | ||||||
| Prepaid expenses and other current assets | 759,391 | 504,973 | ||||||
| Total current assets | 31,583,160 | 18,013,331 | ||||||
| Property and equipment, net | 80,081 | 148,788 | ||||||
| Deferred tax | 567,347 | 1,304,215 | ||||||
| Operating lease right-of-use lease assets | 173,786 | 83,946 | ||||||
| Total non-current assets | 821,214 | 1,536,949 | ||||||
| TOTAL ASSETS | $ | 32,404,374 | $ | 19,550,280 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 15,453,334 | $ | 3,812,954 | ||||
| Credit cards payable | 4,229,677 | 4,404,445 | ||||||
| Short-term loan | 632,911 | 652,422 | ||||||
| Operating lease liabilities-current | 178,746 | 82,269 | ||||||
| Accrued expenses and other current liabilities | 1,050,363 | 1,972,512 | ||||||
| Total current liabilities | 21,545,031 | 10,924,602 | ||||||
| Non-current liabilities | ||||||||
| Operating lease liabilities-non-current | - | 2,363 | ||||||
| Due to related parties | 4,170,418 | 4,170,418 | ||||||
| Total non-current liabilities | 4,170,418 | 4,172,781 | ||||||
| Total liabilities | 25,715,449 | 15,097,383 | ||||||
| Commitments and contingencies | - | |||||||
| Stockholders’ equity | ||||||||
| Preferred stock: | - | - | ||||||
| Common stock: | 3,513 | 3,508 | ||||||
| Additional paid-in capital | 5,787,687 | 5,727,650 | ||||||
| Retained earnings (accumulated deficit) | 931,989 | (1,252,622 | ) | |||||
| Accumulated other comprehensive loss | (34,264 | ) | (25,639 | ) | ||||
| Total stockholders’ equity | 6,688,925 | 4,452,897 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 32,404,374 | $ | 19,550,280 | ||||
The accompanying footnotes are an integral part of these unaudited consolidated financial statements.
HOUR LOOP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In U.S. Dollars, except for share and per share data)
For the Three and Nine Months Ended September 30, 2024 and 2023
(Unaudited)
| Three Months | Three Months | Nine Months | Nine Months | |||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues, net | $ | 31,075,498 | $ | 29,152,360 | $ | 83,827,327 | $ | 72,637,417 | ||||||||
| Cost of revenues | (14,036,187 | ) | (13,819,798 | ) | (36,710,400 | ) | (36,331,604 | ) | ||||||||
| Gross profit | 17,039,311 | 15,332,562 | 47,116,927 | 36,305,813 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling and marketing | 14,585,652 | 13,632,333 | 38,603,540 | 33,385,216 | ||||||||||||
| General and administrative | 1,731,816 | 1,631,484 | 5,316,176 | 5,311,323 | ||||||||||||
| Total operating expenses | 16,317,468 | 15,263,817 | 43,919,716 | 38,696,539 | ||||||||||||
| Income (loss) from operations | 721,843 | 68,745 | 3,197,211 | (2,390,726 | ) | |||||||||||
| Other (expenses) income | ||||||||||||||||
| Other expense | (516 | ) | (3,527 | ) | (6,449 | ) | (7,470 | ) | ||||||||
| Interest expense | (62,862 | ) | (62,476 | ) | (186,958 | ) | (185,964 | ) | ||||||||
| Other income | 28,933 | 19,750 | 116,444 | 56,102 | ||||||||||||
| Total other expenses, net | (34,445 | ) | (46,253 | ) | (76,963 | ) | (137,332 | ) | ||||||||
| Income (loss) before income taxes | 687,398 | 22,492 | 3,120,248 | (2,528,058 | ) | |||||||||||
| Income tax (expense) benefit | (217,751 | ) | (37,548 | ) | (935,637 | ) | 508,390 | |||||||||
| Net income (loss) | 469,647 | (15,056 | ) | 2,184,611 | (2,019,668 | ) | ||||||||||
| Other comprehensive loss | ||||||||||||||||
| Foreign currency translation adjustments | 15,966 | (12,032 | ) | (8,625 | ) | (19,885 | ) | |||||||||
| Total comprehensive income (loss) | 485,613 | (27,088 | ) | 2,175,986 | (2,039,553 | ) | ||||||||||
| Basic and diluted income (loss) per common share | $ | 0.01 | $ | (0.00 | ) | $ | 0.06 | (0.06 | ) | |||||||
| Weighted-average number of common shares outstanding | 35,130,677 | 35,058,340 | 35,111,844 | 35,061,286 | ||||||||||||
The accompanying footnotes are an integral part of these unaudited consolidated financial statements.
HOUR LOOP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In U.S. Dollars)
For the Nine Months Ended September 30, 2024 and 2023
(Unaudited)
| Nine Months | Nine Months | ||||||||
| Ended | Ended | ||||||||
| September 30, | September 30, | ||||||||
| 2024 | 2023 | ||||||||
| Cash flows from operating activities | |||||||||
| Net income (loss) | $ | 2,184,611 | $ | (2,019,668 | ) | ||||
| Reconciliation of net income (loss) to net cash used in operating activities: | |||||||||
| Depreciation expenses | 98,624 | 100,441 | |||||||
| Amortization of operating lease right-of-use lease assets | 157,520 | 262,913 | |||||||
| Deferred tax | 736,868 | (508,390 | ) | ||||||
| Stock-based compensation | 60,042 | 34,333 | |||||||
| Inventory allowance | 578,622 | 972,582 | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable | 199,426 | (384,775 | ) | ||||||
| Inventory | (15,383,373 | ) | (5,896,260 | ) | |||||
| Prepaid expenses and other current assets | (254,418 | ) | (412,309 | ) | |||||
| Accounts payable | 11,640,380 | 5,439,274 | |||||||
| Credit cards payable | (174,768 | ) | (412,770 | ) | |||||
| Accrued expenses and other current liabilities | (922,149 | ) | (842,318 | ) | |||||
| Operating lease liabilities | (153,270 | ) | (280,333 | ) | |||||
| Net cash used in operating activities | (1,231,885 | ) | (3,947,280 | ) | |||||
| Cash flows from investing activities: | |||||||||
| Purchases of property and equipment | (35,031 | ) | (14,024 | ) | |||||
| Net cash used in investing activities | (35,031 | ) | (14,024 | ) | |||||
| Effect of changes in foreign currency exchange rates | (22,998 | ) | (38,673 | ) | |||||
| Net change in cash | (1,289,914 | ) | (3,999,977 | ) | |||||
| Cash at beginning of the period | 2,484,153 | 4,562,589 | |||||||
| Cash at end of the period | $ | 1,194,239 | $ | 562,612 | |||||
| Supplemental disclosures of cash flow information: | |||||||||
| Cash paid for interest | $ | 15,266 | $ | 172,964 | |||||
| Cash paid for income tax | $ | 210,811 | $ | 362 | |||||
| Noncash investing and financing activities: | |||||||||
| Operating lease right-of-use of assets and operating lease liabilities recognized | $ | 248,917 | $ | 27,330 | |||||
The accompanying footnotes are an integral part of these unaudited consolidated financial statements.
FAQ
What was Hour Loop's (HOUR) revenue growth in Q3 2024?
What is Hour Loop's (HOUR) net income for Q3 2024?
What is Hour Loop's (HOUR) full-year 2024 revenue guidance?
How much cash does Hour Loop (HOUR) have as of September 30, 2024?
